The Egyptian General Petroleum Corporation (EGPC) is shifting into exporting bunker fuel instead of importing high sulfur fuel oil from Europe, according to Al Mal News.
Imports have been reduced because domestic natural gas is now meeting Egypt’s needs and there is less demand.
Traders stated that the change was adding to oversaturation of bunker fuel in the European market.
EGPC offered around five 25,000 metric ton (mt) cargoes of RME 180 CST bunker fuel during the past few weeks, as it loaded free on board (FOB) in Alexandria or Suez, traders pointed out.
EGPC recently released a tender to load RME 180 CST FOB Alexandria over April 3rd and April 5th.
“Egypt used to import much more fuel oil than now, so while I appreciate there are [refinery upgrades in Northwest Europe] and less fuel oil is coming out, but there is also less demand,” a trader pointed out.